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Copyright 2009, Prentice-Hall, Inc.18-1 A Framework for Marketing Management Chapter 18 Managing Marketing in the Global Economy.

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Presentation on theme: "Copyright 2009, Prentice-Hall, Inc.18-1 A Framework for Marketing Management Chapter 18 Managing Marketing in the Global Economy."— Presentation transcript:

1 Copyright 2009, Prentice-Hall, Inc.18-1 A Framework for Marketing Management Chapter 18 Managing Marketing in the Global Economy

2 Copyright 2009, Prentice-Hall, Inc. 18-2 Chapter Questions What factors should a company review before deciding to market internationally? What are the major ways of entering foreign markets? What are the keys to effective internal marketing? How can a company improve its marketing implementation? How can companies be responsible social marketers?

3 Copyright 2009, Prentice-Hall, Inc. 18-3 Global Firm Operates in two or more countries and captures R&D, production, logistics, marketing, and finance advantages not available to purely domestic competitors. Plan, operate, and coordinate their activities on a worldwide basis.

4 Copyright 2009, Prentice-Hall, Inc. 18-4 Major Decisions in International Marketing Deciding whether to go abroad Deciding which markets to enter Deciding how to enter the market Deciding on the marketing program Deciding on the marketing organization

5 Copyright 2009, Prentice-Hall, Inc. 18-5 Deciding Whether to Go Abroad Factors drawing companies into the international arena: Higher profit opportunities Need a larger customer base to achieve economies of scale or want to reduce dependence on any one market To counterattack global competitors Customers are going abroad and require international service

6 Copyright 2009, Prentice-Hall, Inc. 18-6 Deciding Whether to Go Abroad Risks: Might not understand foreign preferences and could fail to offer a competitively attractive product Might not understand the other country’s business culture or know how to deal with foreign regulations May lack managers with international experience Other country might change its commercial laws, devalue its currency, or undergo a political revolution and expropriate foreign property

7 Copyright 2009, Prentice-Hall, Inc. 18-7 Deciding Which Markets to Enter Factors influencing attractiveness of a market:  Product  Geography  Income and population  Political climate  Other factors

8 Copyright 2009, Prentice-Hall, Inc. 18-8 Deciding How to Enter the Market Indirect and direct exporting Licensing Joint ventures Direct investment

9 Copyright 2009, Prentice-Hall, Inc. 18-9 Deciding on the Marketing Program Standardized marketing mix  Keeps costs low  Allows for brand image consistency  Enables the firm to leverage ideas quickly and efficiently Adapted marketing mix  Market program is adjusted to each target market

10 Copyright 2009, Prentice-Hall, Inc. 18-10 Five International Product and Communication Strategies Straight extension Product adaptation Product invention Communication adaptation Dual adaptation

11 Copyright 2009, Prentice-Hall, Inc. 18-11 Price and Distribution Price escalation—must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to the product’s factory cost. Gray market—branded products are diverted from normal or authorized distribution channels in the country of product origin or across international borders.

12 Copyright 2009, Prentice-Hall, Inc. 18-12 Country-of-Origin Effects Distinct attitudes and beliefs about brands or products from particular countries.

13 Copyright 2009, Prentice-Hall, Inc. 18-13 Internal Marketing Requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.

14 Copyright 2009, Prentice-Hall, Inc. 18-14 Organizing the Marketing Department Functionally Geographically Product or brand Market Matrix Corporate/division

15 Copyright 2009, Prentice-Hall, Inc. 18-15 Relations with Other Departments Marketing vice president, or CMO, tasks:  Coordinate the company’s internal marketing activities  Coordinate marketing with finance, operations, and other company functions to serve the customer

16 Copyright 2009, Prentice-Hall, Inc. 18-16 Managing the Marketing Process Marketing implementation—the process that turns marketing plans into action assignments and ensures that they accomplish the plan’s stated objectives.

17 Copyright 2009, Prentice-Hall, Inc. 18-17 Marketing Metrics Sales metrics Customer readiness to buy metrics Customer metrics Distribution metrics Communication metrics

18 Copyright 2009, Prentice-Hall, Inc. 18-18 Evaluation and Control Annual-plan control Profitability control Efficiency control Strategic control

19 Copyright 2009, Prentice-Hall, Inc. 18-19 The Control Process Goal setting—What do we want to achieve? Performance measurement—What is happening? Performance diagnosis—Why is it happening? Corrective action—What should we do about it?

20 Copyright 2009, Prentice-Hall, Inc. 18-20 The Marketing Audit A comprehensive, systematic, independent, and periodic examination of a company’s (or business unit’s) marketing environment, objectives, strategies, and activities to identify problems and opportunities and to recommend improvements.

21 Copyright 2009, Prentice-Hall, Inc. 18-21 The Marketing Audit Examines six major marketing components:  Macroenvironment and task environment  Marketing strategy  Marketing organization  Marketing systems  Marketing productivity  Marketing function

22 Copyright 2009, Prentice-Hall, Inc. 18-22 Socially Responsible Marketing Ethical, legal, and socially responsible behavior. Cause-related marketing—links the firm’s contributions to a designated cause with customers’ engaging directly or indirectly in revenue-producing transactions with the firm. Sustainability—the importance of meeting humanity’s needs without harming future generations.

23 Copyright 2009, Prentice-Hall, Inc. 18-23 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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